Bitcoin Price: Big Move Brewing as $9.5K Becomes Next Key Battleground

Published on by Cointele | Published on

Bitcoin price closed the week at $9,207, down 3.66%. Despite a surprisingly low volatility weekend, the bulls helped keep Bitcoin price above $9,000 for 10 days and at the time of writing the price continues to consolidate.

Volume returned to lower levels last week as the price consolidated in preparation for a larger movement which will most likely either send Bitcoin to retest previous weekly resistance at $11,500 or retrace back to find demand at lower prices.

Today, Bitcoin has continued to find support at the 200-day moving average, which has been supporting the price since it was broken as resistance.

The pinch between these moving averages is an area of interest to follow as a daily close above or below these key averages could indicate the next direction for Bitcoin price.

Trading volume has seen a significant decline, which is normally implicit of a bigger move brewing with breakout traders waiting to apply pressure once the inevitable move occurs.

With Bitcoin trapped between key moving averages and below weekly resistance on the daily chart, the 4-hour chart Bollinger Bands clearly shows the extent of the tightening on price action.

The bullish case for Bitcoin is that the bulls have maintained support over $9,000 for 10 days and price action is forming a rounding bottom which can be seen as a sign of continuation to the upside when in a bullish move.

While seemingly a tall order, the most recent breaks above $10,000 saw Bitcoin move sharply higher.

Bearish caseThe bearish case for Bitcoin suggests that the sharp rejection seen when the price briefly crossed $10,000, could imply that the bulls are not done accumulating below.

A decisive move is likely to occur in the next few days with the potential to the upside being significant.

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